A multifaceted investment agreement worth over $3 billion has been signed between Pakistan and Dubai, encompassing cooperation in the areas of infrastructure development, industrial zones, and railways.
Shahid Ashraf Tarar, Minister of Communication, Railways, and Maritime Affairs, and Sultan Ahmed bin Sulayem, Chairman of Dubai’s Ports, Customs, and Free Zone Corporation (PCFC), inked the deal on the fringes of the World Economic Forum in Davos.
According to an official release from the Ministry of Railways, the partnership encompassed the establishment of freight facilities, a multi-modal logistics park, and a dedicated freight route.
The primary trade gateway to Pakistan, Qasim International Container facility, would see infrastructural expansion by Dubai Port (DP) World, which also intends to create an economic zone close to the facility.
In an effort to improve ties in the maritime and logistics sectors, the governments have inked two intergovernmental framework agreements. These agreements cover prospective construction of a “Dedicated Freight Corridor” and “Economic Zone” close to Karachi.
For the purposes of project development, Pakistan Railways and Port Qasim Authority will represent the Pakistani government, while DP World will represent the government of Dubai.
The most populous city in Pakistan, Karachi Port, will be crossed by the rail-based Dedicated Freight Corridor as it travels 50 km to the Pipri Marshalling Yard.
In addition to increasing road safety, this would relieve traffic in Karachi. It will greatly increase productivity, shorten transit times, and lower overall logistics costs.
The national railway business, Pakistan Railways, is controlled by the state and operates over 8,000 route-km of railways throughout the nation, spanning from Peshawar in the northwest to Karachi in the south.
In order to dredge the navigation channel, a second framework agreement was negotiated with Pakistan’s Ministry of Maritime Affairs and the Qasim International Container Terminal.
The capital dredging would be handled by DP World on behalf of the Dubai government.
The creation of an economic zone at Port Qasim, which seeks to draw in more than $3 billion in foreign direct investment, will also be facilitated by this framework agreement.
The economic zone will be developed by DP World in order to maximize Pakistan’s economic activity.
“The DP World has a longstanding proud presence in Pakistan witnessed by mutually rewarding engagement,” Ashraf stated during his speech during the signing event. Based on their enduring relationship and confidence, the two fraternal nations have chosen to further solidify their economic cooperation through significant initiatives.”
The signing of investment framework agreements, he continued, emphasizes Pakistan’s significance as a gateway to Asia and the economic benefits of its advantageous location.
Sulayem, on the other hand, claimed that Pakistan is a significant commercial route and expanding market to Central Asia.
“We are pleased to have worked with Port Qasim and other Pakistani government organizations to develop new freight systems. We are also proud to have contributed to its trading ability through our operations at Qasim International Container Terminal.”
